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Residential property prices continue to soar in Australia

Residential property prices in Australia have risen 2.2 percent in the March quarter, resulting in four consecutive quarters of growth, the Australian Bureau of Statistics (ABS) revealed on Tuesday.
Over the year to March, prices have soared 10.2 percent and according to Prices Branch Program Manager at the ABS Marcel van Kints, although most capital cities have increased in price, it’s predominantly Sydney and Melbourne that continue to drive the national result.
“The price rises in Sydney (3.0 percent) and Melbourne (3.1 percent) were partially offset by falls in Perth (1.0 percent) and Darwin (0.9 percent),” van Kints said.
Through the year, Sydney’s prices increased 14.4 percent, which was the highest in the country, above Melbourne at 13.4 percent.
“The variation in dwelling price growth across the country is significant and house price developments in other markets are much weaker,” HIA senior economist Shane Garrett explained in a statement obtained by Xinhua.
“This situation underlines the dangers of applying one size fits all’ policy remedies to the challenges in Australia’s housing market.”
Recently, additional restrictions have been implemented by the Australian Prudential Regulation Authority, which have increased barriers to foreign investor participation.
Although acknowledging there is evidence to suggest dwelling prices growth has slowed as a result of the new regulations, Garrett insisted that the solution to overcoming Australia’s considerable housing affordability problem lies in delivering a greater supply of new dwelling stock in a more cost effective manner.
“We are concerned that some recent policy changes could undermine this objective,” Garrett said.—Xinhua